Chicago Public School has adopted the Pay for Success program funded with Social Impact Bonds.
As I have written here before, Social Impact Bonds partner investors and corporate philanthropies in profit-making ventures in the public sector.
In a post written for this blog, special education advocate and activist Bev Johns wrote:
Pay for Success has been used in Utah to prevent 99 percent of children supposedly headed for special education from actually being identified for special education, and paid Goldman Sachs and other investors for each child NOT placed in special education. This is a huge financial incentive to NOT identify children as needing special education, and there is absolutely no research stating 99 percent of students in special education should not be there.
In Chicago, Pay for Success may allow Goldman Sachs to double its investment, depending on how many students are NOT identified for special education.
When the first cohort of students enters kindergarten, CPS will begin paying the lenders for each fewer child who needs special education services when compared to the control group. CPS will pay $9,100 per child annually, an amount that increases by 1 percent each year.
Just to be clear: Goldman Sachs, a giant Wall Street investment firm, will receive over $9000 every year for each identified child that does not receive special education services at CPS.
When Sadie Stockdale came to CPS from her previous work at Teach for America where she was Director of Recruitment she came to do Goldman Sachs’ work.
From Sadie’s Linked In resume:
I thought you might want to see the name and face and past of the current education policy advisor to the Mayor.